Brazil's government is considering pushing back the deadline for companies to pay federal tax, Finance Minister Guido Mantega said Tuesday in a meeting with the country's industrialists.
The delay, requested by the president of the National Industry Confederation (CNI), aims to help small and medium-sized companies in particular by injecting money into the market, as banks are now withholding credit.
Mantega said the reduction in credit grants is understandable, since Brazilian banks need to be more cautious as the worldwide credit crunch continues.
The government is also analyzing the impact of the delay in tax payments, including some legal fallouts, he added.
Emerging economies may be less affected by the financial crisis due to their strong domestic market and less involvement in the bad assets of developed countries, said the minister.
But he still hoped that the recession would not turn into a full-blown depression, Mantega said.
Source: Xinhua
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